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1. Going Green Learning as We Go Opportunity Green Los Angeles,
CA November 8, 2009 Beth Springer Executive Vice President The
Clorox Company
2. Clorox Then: 1913 Founded as an industrial bleach company
1928 Went public 1957 Acquired by Procter & Gamble 1969
Independent again, still making only liquid bleach Portfolio
expanded through innovation, brand building and acquisition
November 8, 2009 Clorox Presentation at Opportunity Green
Conference 2
3. Clorox Now: Sales of $5.3 Billion 8300 employees 80% of
business in USA More than two dozen plants in the USA Manufacture
products in 25 countries SIX R&D facilities Traded on NYSE
November 8, 2009 Clorox Presentation at Opportunity Green
Conference 3
4. Leading Consumer Brands November 8, 2009 Clorox Presentation
at Opportunity Green Conference 4
5. Weve made a lot of sustainability progress in the last
several years, but are still fairly early in our journey Green is a
driving force Extreme behind the company Green Clorox goal Shaded
Leverage green for growth Green Cloroxs Sustainability Focus is to
reduce costs Journey Lean and increase efficiencies Green Clorox
2007 Defensive Key motivation is risk avoidance Green * From Fall
2004 Sloan Business Review November 8, 2009 Clorox Presentation at
Opportunity Green Conference 5
6. The journey is long, but we have made some good progress in
the last five years Environmental sustainability is: Embedded in
the companys strategy and performance scorecard Articulated via a
corporate-wide Eco Strategy and managed by a dedicated Eco office
Driven into the goals and plans of our individual business units
Accomplishments to date include: Setting a public GHG goal as a
member of Climate Leaders Making progress in reducing operational
and product footprints Building two natural, plant-based brands
With continued opportunity to: Further embed eco criteria into our
business processes and management incentive systems Set additional
public goals and issue a formal Sustainability Report Further
reduce our operational and product eco footprints November 8, 2009
Clorox Presentation at Opportunity Green Conference 6
7. Going Green: Learning as We Go Our initial focus was on:
Reducing our operational footprint November 8, 2009 Clorox
Presentation at Opportunity Green Conference 7
8. Reducing our operational footprint Manufacturing
opportunities Lighting Retrofits Water Recycling Waste Reduction
November 8, 2009 Clorox Presentation at Opportunity Green
Conference 8
9. Reducing our operational footprint Distribution
opportunities Truck to Rail Network Improvements Using other more
efficient carriers November 8, 2009 Clorox Presentation at
Opportunity Green Conference 9
10. Reducing our operational footprint Workplace opportunities
Reduced Business Travel Reduced Paper Use By 20% Created an Eco
Network by 30% Converted to more fuel efficient fleet Making
facilities more efficient November 8, 2009 Clorox Presentation at
Opportunity Green Conference 10
11. Going Green: Learning as We Go Our initial focus was on:
But we also learned that: Reducing our operational footprint We
needed to make our product portfolio more sustainable November 8,
2009 Clorox Presentation at Opportunity Green Conference 11
12. Making the product portfolio more sustainable Our largest
footprint is in the over one billion products we sell into the
marketplace each year 40 Plants TO OVER 1 Billion Products!
November 8, 2009 Clorox Presentation at Opportunity Green
Conference 12
13. Making the product portfolio more sustainable About 80% of
that product footprint is actually outside the walls of Clorox, but
still needs to be managed 60% % Total ECO Impact* 40% 45% 20% 20%
15% 10% 10% 0% Raw Materials Manufacture Distribution (of Consumer
Use End of Life (Sourcing & (Product formulation finished
product to Production) and packaging) customer) * Illustrative
purposes November 8, 2009 Clorox Presentation at Opportunity Green
Conference 13
14. Making the product portfolio more sustainable Additionally,
the eco impact of each of our businesses is different, and needs to
be managed separately ECO impact Relative % of Sales November 8,
2009 Clorox Presentation at Opportunity Green Conference 14
15. Making the product portfolio more sustainable To better
manage the individual businesses, we have created and are
implementing a new Eco Assessment process Cloroxs ECO Assessment
Process Environmental Sustainability Grounding Product Life Cycle
Filter Raw Matls. Manufacture Distribution Consumer Use End of Life
Stakeholder Consumer NGOs Customer Competition Government Filter
Investors Employees Media Community Groups Business Footprint
Impact Risk Mitigation Growth Filter Reduction Environmental
Sustainability Priorities and Recommendations November 8, 2009
Clorox Presentation at Opportunity Green Conference 15
16. Going Green: Learning as We Go Our initial focus was on:
But we also learned that: Reducing our operational footprint We
needed to make our product portfolio more sustainable Making
existing products more sustainable November 8, 2009 Clorox
Presentation at Opportunity Green Conference 16
17. Greening up existing product lines Cleaning products, trash
bags and charcoal are a few recent examples Kingsford Natural
Concentrated Briquettes Clorox 2 Glad Compostable November 8, 2009
Clorox Presentation at Opportunity Green Conference 17
18. Greening up existing product lines Weve improved a third of
our product portfolio in the last five years, and our goal is to
improve another 25% in the next four years Percent of the Product
Portfolio with Eco Improvements 60% 40% 20% 0% 2005-2009 2010-2013
Goal November 8, 2009 Clorox Presentation at Opportunity Green
Conference 18
19. Going Green: Learning as We Go Our initial focus was on:
But we also learned that: Reducing our companys operational
footprint We needed to make our product portfolio more sustainable
Making existing products more sustainable We needed to correct
misinformation on some products November 8, 2009 Clorox
Presentation at Opportunity Green Conference 19
20. Correcting misinformation Clorox bleach is one example
where some perceptions are just not true 1. Salt The truth During
waste treatment, remaining bleach is degraded to salt. about bleach
There is no free chlorine in Clorox Liquid Bleach 4. Municipal
Treatment- Salt-to-Salt 2. Bleach Sodium Hypochlorite bleach Septic
Tank Manufacture Bleach Cycle is the most effective and affordable
disinfectant available today During product use, 95-98% of
household bleach breaks down into salt and water. No other manmade
product hassaved more lives than sodium hypochlorite bleach. 3.
Product Use November 8, 2009 Clorox Presentation at Opportunity
Green Conference 20
21. Established a product ingredient communication program We
are also reducing misperceptions by being transparent on
ingredients November 8, 2009 Clorox Presentation at Opportunity
Green Conference 21
22. Going Green: Learning as We Go Our initial focus was on:
But we also learned that: Reducing our companys operational
footprint We needed to make our product portfolio more sustainable
Making existing products more sustainable We needed to correct
misinformation on some products There is an opportunity to build
new brands made with plant-based ingredients November 8, 2009
Clorox Presentation at Opportunity Green Conference 22
23. Opportunity to build new brands with plant-based
ingredients Burts Bees and Green Works are new lines of business
Acquired December 2007 Launched January 2008 November 8, 2009
Clorox Presentation at Opportunity Green Conference 23
24. Going Green: Learning as We Go Our initial focus was on:
But we also learned that: Reducing our companys operational
footprint We needed to make our product portfolio more sustainable
Making existing products more sustainable We needed to correct
misinformation on some products There is an opportunity to build
new brands made with plant-based ingredients Products have to meet
a genuine consumer need and be priced in a way that creates value
for manufacturers, retailers and consumers November 8, 2009 Clorox
Presentation at Opportunity Green Conference 24
25. Opportunity to build new brands with plant-based
ingredients Our bet on natural products is based on an insight that
consumers are motivated by concerns about My environment versus The
environment Consumer Definition of My Environment vs. The
Environment The Environment My Environment Work Family/ Home World
Parks Car Community Body Yard Local Natural Environment Within My
Control Outside of My Control Immediate Long-Term In me, On me,
Around me November 8, 2009 Clorox Presentation at Opportunity Green
Conference 25
26. Products must met genuine needs and be priced right
Kingsford Surefire reduced our environmental footprint while also
offering the consumer a better product at the same price Upgraded
raw materials and optimized formula Improved process and quality
New briquette shape for more grilling power November 8, 2009 Clorox
Presentation at Opportunity Green Conference 26
27. Products must met genuine needs and be priced right The
initial line of Green Works products provided a more natural
alterative to conventional cleaners at only a modest price premium
+11% +25% +6% +14% +4% +18% November 8, 2009 Clorox Presentation at
Opportunity Green Conference 27
28. Products must met genuine needs and be priced right Despite
the clear eco benefits of concentrating household cleaners, the
usage experience barriers remain too high to change behavior
Concentrates reduce Product & Packaging Costs product &
package costs And can result in Distribution Costs significant
distribution savings Retail Price Which result in a lower price per
use Per Use for the consumer Consumer Product Value Usage But to
date, the price and environmental benefits are not enough
Performance Experience to overcome the diluting hassles November 8,
2009 Clorox Presentation at Opportunity Green Conference 28
29. Going Green: Learning as We Go Our initial focus was on:
But we also learned that: Reducing our companys operational
footprint We needed to make our product portfolio more sustainable
Making existing products more sustainable We needed to correct
misinformation on some products There is an opportunity to build
new brands made with plant-based ingredients Products have to meet
a genuine consumer need and be priced in a way that creates value
for manufacturers, retailers and consumers Being guided by strategy
and steady principles November 8, 2009 Clorox Presentation at
Opportunity Green Conference 29
30. Steady Principle Our work is always guided by our values
and our strategies Clorox Core Values Stretch for Results Do the
Right Thing Take Personal Ownership Clorox Mission Work Together to
Win Making Everyday Life Better, Everyday Clorox Corporate Strategy
Maximize Economic Profit across categories, customers Clorox Eco
Strategy and countries. Make Environmental Sustainability core to
how we do business to: Enable Cloroxs EP growth Enhance corporate
reputation Build employee pride November 8, 2009 Clorox
Presentation at Opportunity Green Conference 30
31. Going Green: Learning as We Go Our initial focus was on:
But we also learned that: Reducing our companys operational
footprint We needed to make our product portfolio more sustainable
Making existing products more sustainable We needed to correct
misinformation on some products There is an opportunity to build
new brands made with plant-based ingredients Products have to meet
a genuine consumer need and be priced in a way that creates value
for manufacturers, retailers and consumers Being guided by strategy
and steady principles We have to learn and adapt as we go November
8, 2009 Clorox Presentation at Opportunity Green Conference 31
32. Learning and Adapting We are continually learning from
people and groups outside company walls NGOs Universities Media
Industry Associations Blogs Consumer Comments Peer Companies
Advisory Boards Retail Customers Suppliers November 8, 2009 Clorox
Presentation at Opportunity Green Conference 32
33. Work on Green Works and Brita are two clear examples where
outside parties have helped us improve Green Work and Sierra Club
joined Brita better taste, and helps reduce together to help bring
natural bottled water waste cleaning to the mainstream But we
needed to find a way to Vetting process led to a new level of
recycle our used filters engagement Opened our doors to Sierra Club
on Current waste treatment facilities in product and company
information the U.S. not equipped to recycle used Product
ingredients filters Bleach Environmental and workplace safety
record After much research, Brita partnered with Preserve, maker of
100 percent Dialogue between Sierra Club and Clorox reinforced
importance and recycled household consumer goods benefits of
transparency November 8, 2009 Clorox Presentation at Opportunity
Green Conference 33
34. Lots yet to learn. Among the questions we continue to
wrestle with . . . Have not always been able to justify major Still
working to establish an eco mindset capital investments for big eco
gains throughout Clorox so that Eco Office is not the main
generator of eco ideas Still trying to crack the consumer code for
major footprint reduction of our cleaners Still exploring heat
recapture technology for electricity generation at our Kingsford
plants November 8, 2009 Clorox Presentation at Opportunity Green
Conference 34
35. Going Green: Learning as We Go Our initial focus was on:
But we also learned that: Reducing our companys operational
footprint We needed to make our product portfolio more sustainable
Making existing products more sustainable We needed to correct
misinformation on some products There is an opportunity to build
new brands made with plant-based ingredients Products have to meet
a genuine consumer need and be priced in a way that creates value
for manufacturers, retailers and consumers Being guided by steady
principles We have to learn and adapt as we go November 8, 2009
Clorox Presentation at Opportunity Green Conference 35